What to Do After Selling a House in Florida: Utilities, Homestead, Taxes and Moving

Knowing what to do after selling a house saves you money and stress in the weeks after closing. The keys are handed over, but a few loose ends remain. You need to stop the utilities and insurance, get your escrow refund, make sure the lender releases the mortgage, move your homestead benefit, and keep the right records for tax time. This checklist walks Palm Beach County and Port St. Lucie sellers through each step in order.

Key takeaways

• Cancel homeowners insurance only after the sale has closed and funded. Then ask your insurer about any refund of unused premium.
• Your old lender must return any escrow balance within 20 business days of payoff, and record a release of the mortgage within 60 days.
• To carry your Save Our Homes benefit to a new Florida homestead, file Form DR-501T with your new homestead application by March 1. You can carry up to $500,000.
• You may exclude up to $250,000 of gain on a main home, or $500,000 for married couples filing jointly, if you meet the 2 of 5 year rule.
• Keep your closing statement and records of improvements until the period of limitations ends for the tax year of the sale.

What to do after selling a house: the first week

Start with anything that costs you money every day. Most of these jobs take one phone call or an online form.

Confirm the sale funded

Before you cancel anything, make sure the deal has fully closed. Ask the title company to confirm that the buyer's funds arrived, the deed was sent for recording, and your proceeds went out. Then check your bank account. If you were paid by wire, call your bank to confirm the deposit, and never act on new wire instructions sent by email.

Stop or transfer utilities

Ideally, you set end dates before closing. If not, do it now. Contact the electric company, water and sewer provider, gas company, internet and cable, trash service if billed separately, and any pool or lawn service. In much of Palm Beach County and St. Lucie County, electric service is through FPL, which lets you stop service online. Water often comes from a city or county utility, so check your last bill.

Also, cancel or transfer security monitoring, and remove your smart home devices from your accounts. That way, the new owner does not inherit your cameras, thermostat or doorbell app.

Cancel homeowners and flood insurance

Wait until the sale has closed and funded. If the deal falls through at the last minute, you still need coverage. After closing, call your agent or insurer and cancel the homeowners policy and any separate flood or wind policy. Ask whether you get a refund of unused premium. If your lender paid the premium from escrow, the refund may come to you directly.

What to do after selling a house with a mortgage

If you had a loan, the title company paid it off from your proceeds. Still, a few steps happen after closing, and you should watch for each one.

• Escrow refund: Under federal rules in 12 CFR 1024.34, your servicer must return any escrow balance within 20 days, not counting weekends and legal holidays, after the loan is paid in full.
• Mortgage release: Under section 701.04 of the Florida Statutes, the lender must record a release within 60 days of payoff and send it to you.
• Autopay: Turn off any automatic mortgage payment so an extra draft does not go out.
• HELOC: If you had a home equity line, confirm it was paid off and closed, not just paid down.

Mark your calendar for these dates. If the escrow check or the release does not arrive, call the servicer and keep notes of each call.

Homestead: what to do after selling a house in Florida

In Florida, the homestead exemption belongs to the owner and the home together. Once you sell, the exemption on that home ends for the next tax year, and the buyer files their own. Your job is to set up the next one.

Moving your Save Our Homes benefit

Over the years, Save Our Homes may have kept your assessed value well below market value. Portability lets you carry that difference to a new Florida homestead, up to $500,000. The Palm Beach County Property Appraiser says you must set up the new homestead by January 1 of the third year after you leave the old one.

To claim it, file for homestead on the new home and include Form DR-501T by March 1. If you owned the old home jointly, all owners must leave it for the benefit to transfer. Our guide to Florida homestead exemption portability explains the math when you move up or downsize.

If you are leaving Florida

Portability only works for a new home in Florida. If you are moving out of state, the benefit does not follow you. In that case, focus on updating your address with the property appraiser and tax collector so any final notices reach you.

Property taxes for the year you sold

Florida property taxes are paid in arrears. Under section 197.333, the year's bill is due November 1 and becomes delinquent April 1 of the next year. Because of that timing, your closing statement usually gives the buyer a credit for your share of the current year's taxes. The buyer then pays the full bill when it arrives.

So in most sales, you owe nothing more to the tax collector. However, check your closing statement to confirm the proration. If you prepaid the year's taxes before closing, the math works the other way, and the buyer credited you.

What to do after selling a house at tax time

The sale will matter on next year's tax return, even if you owe nothing. The closing agent reports the sale to the IRS on Form 1099-S, and you should get a copy.

The home sale exclusion

According to IRS Publication 523, you can exclude up to $250,000 of gain on the sale of your main home, or $500,000 if married filing jointly. To qualify, you must have owned the home and lived in it for at least 2 of the 5 years before the sale. If you received a Form 1099-S, report the sale on your return even when the gain is fully excluded.

Records to keep

Gather these into one folder, paper or digital:

• The final signed settlement statement for the sale.
• Your original purchase closing statement.
• Receipts and permits for improvements, such as a roof, impact windows or a pool.
• Form 1099-S and the escrow refund statement.

The IRS says to keep records about property until the period of limitations expires for the year you sell it. A CPA can tell you how long that is in your case.

What to do after selling a house: update your address

Mail forwarding catches a lot, but not everything. File a change of address with the U.S. Postal Service. Then update your address with these groups directly:

• Banks, credit cards, investment accounts and your employer.
• Your driver license, vehicle registration and voter registration.
• Doctors, pharmacies, schools and subscriptions.
• The property appraiser and tax collector, so final notices reach you.

For more on the move itself, see our list of things to remember when moving house.

What to do after selling a house when you plan to buy again

Your proceeds are likely the largest check you will get for a while, so do not rush. If you plan to buy again, talk with a lender before you shop. If you are renting for now, look at short leases that give you time to choose. Some sellers also set aside part of the money for taxes, moving costs and furniture for the next place.

Finally, think about timing. If you want to keep your homestead benefit, the new home must be your Florida homestead by January 1 of the third year after you left the old one. That window is generous, but it is not endless.

Also, think about what you would do differently next time. Many sellers keep a short list of the repairs, upgrades and paperwork that helped or slowed their sale. That list is useful the next time you buy, because it tells you what to check before you make an offer.

Frequently asked questions

When should I cancel homeowners insurance after selling?

After the sale has closed and funded. Canceling too early leaves you exposed if the deal is delayed or falls apart.

How long does it take to get my escrow money back?

Federal rules require the servicer to return it within 20 days, not counting weekends and legal holidays, after the loan is paid in full.

Do I lose my homestead exemption when I sell?

The exemption on the old home ends, but you can carry your Save Our Homes benefit to a new Florida homestead, up to $500,000. File Form DR-501T by March 1.

Do I have to report the sale of my home on my taxes?

If you got a Form 1099-S, yes, even if the gain is fully excluded. Ask a tax professional about your own case.

What to do after selling a house if I have not found my next home yet?

Keep your proceeds somewhere safe and easy to reach, rent short term, and get pre-approved before you shop. Watch your portability deadline if you plan to stay in Florida.

Sources

• 12 CFR 1024.34, timely escrow refunds
• Florida Statutes, s. 701.04 (mortgage release)
• Florida Statutes, s. 197.333 (when taxes are due)
• Palm Beach County Property Appraiser, portability
• IRS, Publication 523: Selling Your Home
• IRS, how long should I keep records
• FPL, stop service

This article is general information, not legal, tax or financial advice. Tax and homestead rules change, so consult a licensed professional about your own situation.

Still planning your sale? Request a personalized seller net-proceeds sheet from Pure Equity so you know what you will walk away with before you list. Start with a free home value report. Ready to buy your next home? Our buyer agents work across Palm Beach County, Hobe Sound and Port St. Lucie. Contact our team.